by Ken Gimblin

SACRAMENTO–With the city of Sacramento holding a check of $4.35 million in escrow which was wired to the city from the Sacramento Kings the Kings owners Sacramento Basketball Holdings, the Kings and the city now wait for the owners of the Macy’s building located at the Westfield Downtown Plaza located at the western end of the mall to make a decision to sell the building.

The money would only come into play if the city council approves eminent domain in the case of the Macy’s building property owners CalPERS and U.S. Bank who did reach terms to sell the building last March but the deal fell apart. While the reasons were not clear why CalPERS and U.S. Bank changed their minds money was rumored to be the top reason and that the Macy’s building owners can hold out for more since the city and the Kings are desperate to purchase the building.

The building is crucial for the Kings as part of that land would be used for the new downtown arena, CalPERS said through a statement released to the media that CalPERS “recongnizes the signifcance of the city’s downtown redevelopment efforts and we are confident that we will reach a solution that is in the best interests of everyone involved our members, the tenant and the city of Sacramento.”

Time is of the essence as the NBA has set an October 2017 deadline to get the arena done and ready or the Kings will have to move out of Sacramento, so for the city of Sacramento and the Kings it’s win big or move elsewhere. That win would have to come in two hurdles the first, the Kings and the city face an anti arena movement to try and place a disclaimer on the ballot in June that all future sports and entertainment facilities that are paid for with city funds be approved by the voters first and the second is the eminent domain issue with the Macy’s building owners.

U.S. Bank did not issue any statements regarding the sale of the building but sources say their holding out for more than the $4.35 million escrow that the Kings have the city holding onto. Kings president Chris Granger said the Kings are behind the city council’s effort to use eminent domain to buy and move the CalPERS and U.S.Bank owners via a buyout.

The tone of the CalPERS statement sounds like they’re ready to play ball and that they want to sit down with the city and see what they have to offer and Granger added that the Kings are prepared to use eminent domain, “fully committed to our partnership in every facet.”: City officials have said that in talking with eminent domain attorneys the city would have a strong case seeing that the building would be used for a sporting arena, used for high school and college sporting events, graduations, concerts, the Sacramento Convention and Visitors Bureau and at the very minimum hold up to nine events each year and the tenants would not have to pay.

Taking these community events into account eminent domain attorneys say most judges would rule in favor of eminent domain and that CalPERS and U.S.Bank under such scrutiny would have to sell and move. The city tried using eminent domain years ago once but landowner Moe Mohanna who had control of several K Street properties settled the case before facing eminent domain from the city.

In California the Los Angeles Dodgers used eminent domain to obtain Dodgers Stadium in 1959-60 and the Lakers used eminent domain to gain property ownership where Staples Center sits in downtown Los Angeles. One eminent domain laywer said it’s a matter of time for the Macy’s owners and that under case law “Courts have found that (a sports stadium) is a public use, it’s certainly not new” said Brent Hawkins, a partner of Best, Best, and Krieger law firm in Sacramento in an interview with the Sacramento Bee.

Ken Gimblin covers the NBA for Sportstalk radio